Peso strengthens on lower oil prices, US stock market gains

PHILIPPINE STAR/ MIGUEL DE GUZMAN

The peso closed stronger against the dollar Friday after oil prices declined while US stock markets rose.

The peso closed at P50.786 to the dollar, against its Thursday close of P50.81 Thursday, according to the Bankers Association of the Philippines.

The peso was still weaker than its close of P50.711 a week earlier.

The peso opened at P50.80 Friday. The low was P50.895, while the high was P50.735.

Dollar trading volume rose to $1.068 billion Friday from $704.19 million the previous day.

The peso’s performance follows a decline in oil prices, a trader said in an email.

Bloomberg reported Thursday that oil prices dropped the most in two weeks due to concerns over global economic growth.

Oil futures in New York dropped 1.1% Thursday after touching their highest levels since 2014 this week.

Oil prices have been increasing in recent weeks due to supply issues, with major exporters yet to agree on further increasing production to meet growing demand.

Another factor which supported the peso was a perception of risk-on sentiment gaining ground in US markets, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

US stocks in response to expectations of more strong corporate results. The S&P 500 has risen 5% since JPMorgan Chase & Co. kicked off reporting season, following a month of losses. – Luz Wendy T. Noble